Managing Technology in the Public Sector: Aligning IT with the Sector: Aligning IT with the Business of Government

William F. ClarkVP Public Sector CTOVP, Public Sector CTOCA, Inc.

September 23, 2009p ,

Challenge Opportunity

Integrating IT with your business mission requires you to

Challenge Opportunity

IT organizations are i i l k d t t business mission requires you to

communicate your use of IT staff and technology in the delivery of services while maintaining and delivering the

increasingly asked to create and deliver services that address strategic objectives. As you attempt to satisfy ever- maintaining and delivering the

quality of these services.

Executing portfolio and project management and taking a

y p ygrowing demands for new and improved services, you must maintain quality service levels.

management and taking a services portfolio approach provides executives with the ability to set and manage priorities improves the ability

To justify your investments and obtain the appropriate level of resources, you must priorities, improves the ability

to manage costs within budget while delivering services on schedule.

level of resources, you must closely align and integrate IT with your business mission.

2

Problem - Inward Focus and Technology Silos

The Business of GovernmentThe Business of Government“How can we quickly enablenew services?”

“Where can we cut costs without compromising

services?”

“How do we compare

against our industry?”

The CIO Dilemma

Demonstrating and Managing Value

No Services Context

“Last month’s network availability exceeded 99.25%”

“This quarter you consumed X MIPS and

the charge is..”

“A terabyte of storagewill cost you X Dollars”

“Our help desk staff answered Y issues within

30 minutes”

No Services Context

Networks Systems Storage Applications

3

The IT Black Box Cost Center

Lack Single System of Record

Other Challenges to IT and Business Alignment

(Need is for a Single View of the Project or Portfolio)

Most Current systems do not ensure integration with other applications, integrity of processes or consistency of data for reporting purposes.

No consistency in look and feel across various systems such as ERP Financial No consistency in look and feel across various systems such as ERP, Financial, HR, Asset, and Project Management.

Multiple types of reports from each project and program area.

Programs Not Aligned With Strategy

(What Programs are redundant?)

Difficult for CIOs and PEOs to understand costs, benefits and the trade-offs Difficult for CIOs and PEOs to understand costs, benefits and the trade offs between which programs will delivery maximum benefit.

Segregated acquisition and integration plans.

Underestimation of risks- cost, schedule and scope

(Is the Program on-time and on-schedule)

4

Use a management system to align and integrate the organization and IT for increased efficiency on IT spend

Process Management Portfolio Management Project Management Resource PlanningDemand Management

Request 15:N b d New budget

report

Request 215:Security fix

Request 803:Application modification

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Project & Portfolio Management Provides Project & Portfolio Management Provides Structure for IT and Business Alignment

Comprehensive IT Portfolio and Demand Management provides structure for strong IT-Mission Alignment

ITGovernance

Demand

ITIT

PortfolioBRM

PMO

AppsAssets

Mission AreaM O

PeopleProjects

Services

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Service Portfolio Dashboard

PPM with Financial Control and Visibility PPM with Financial Control and Visibility for IT and Business Alignment

D hb d tl t d l ifi t t Dashboards, portlets and role-specific content provide financial control and visibility for Relationship Managers and the PMO

ITGovernance

Demand

ITIT

PortfolioBRM

PMO

AppsAssets

Mission areaM O

PeopleProjects

Services

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PPM Provides Schedule and Costs

PPM with IT System Information Aligns PPM with IT System Information Aligns Services and IT with the Business

Integration across key IT Management Systems provides control and visibility across all services being delivered to the Business

ITGovernance

Demand

AA t

ITIT

PortfolioBRM

PMO

AppsAssets

Mission Area

PeopleProjects

Services

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Services with IT Alignment and Metrics

Align IT with the Business of GovernmentAlign IT with the Business of Government

Demand

Prioritize requestsPrioritize requests

• Align projects with business goals 87%* of the time

Programs

Increase the quality of projects & programs delivered

• Drop project failures by 59%*

Portfolio

• Improve investment decision making

Resources

Financials

• Lower the TCO of each investment

• Reduce costs per project by 37%*

decision-making

• Increase the number ofprojects delivered by 35%*

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• Improve resource utilization

• Reduce staff costs by$18,600 per 100 employees*

*How Project and Portfolio Management Solutionsare Delivering Value to Organizations,IDC Research, September 2008

Two examples where PPM is used to Align Two examples where PPM is used to Align IT with the Business:

A Northeastern StateDepartments request IT services through a service catalog.

The asset management system is checked for available software and hardware assets to fulfill the request.software and hardware assets to fulfill the request.

Project is initiated and resources are assigned based on pre-built templates and best practices.

Status is monitored and reported back to the business in real

itime.

A Mid West CountyReduced fixed labor costs by 8% in 1 year.Increase in customer confidence by doing a better job of Increase in customer confidence by doing a better job of managing expectations. Cut millions of dollars in costs by more effectively managing vendors and enabling selective outsourcing.

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Thank You

14 Copyright © 2009 CAA